Uflex (500148) Q4 03/04 earnings summary

Executive summary

• FY04 turnover including other income rose ~3% to Rs.70,518.31 lacs; profit after tax increased ~13% to Rs.4,036.60 lacs despite a fire that damaged two film lines.

• Cost controls, restored production capacity and a new polyester film line supported results; no dividend was recommended.

Financial highlights

• Net sales and job work were Rs.67,237.18 lacs, up 3.51% YoY; total income was Rs.70,663.37 lacs, up 5.35%.

• Operating profit before interest, depreciation and tax was Rs.14,052.36 lacs versus Rs.14,076.75 lacs; profit before tax rose 13.58% to Rs.7,203.60 lacs.

• Standalone profit after tax was Rs.4,036.60 lacs; reported basic and diluted EPS were Rs.9.09 and Rs.8.36, respectively.

• Consolidated profit after tax was Rs.4,295.89 lacs; consolidated basic and diluted EPS were Rs.8.91 and Rs.8.60.

• Operating cash flow was Rs.18,621.53 lacs; cash and cash equivalents closed at Rs.6,074.23 lacs.

Outlook and guidance

• The 5th film line, with 18,000 MT annual capacity, was expected to be commissioned in May 2004; management expected both new lines to support future revenue and profitability.

• Management was considering a 6th line with 15,000 MT annual capacity, citing global polyester-film demand and market growth.

• The fire-damaged second line was expected to return to operation in early 2005; production lines were insured on a reinstatement basis.

• Management expected cylinder business to improve with rising captive demand and packaging-industry growth.